Copyright © 2014 by McGraw Hill Education (India) Private Limited. All rights reserved.

12–1
 Quality
• In philosophy, quality (from Latin qualitas) is an attribute
or a property.
 Quality
• It is how good or bad something is.

• It is a characteristic or feature that someone or something has something

that can be noticed as a part of a person or thing.

• It is a high level of value or excellence.

• It is Conformance to requirements.

• In manufacturing, a measure of excellence or a state of

being free from defects, deficiencies and significant variations.
 The Quality Dimensions
• Performance: Performance refers to a product's primary operating characteristics. This
dimension of quality involves measurable attributes; brands can usually be ranked objectively
on individual aspects of performance.

• Features: Features are additional characteristics that enhance the appeal of the product or
service to the user.

• Reliability: Reliability is the likelihood that a product will not fail within a specific time period.
This is a key element for users who need the product to work without fail.

• Conformance: Conformance is the precision with which the product or service meets the
specified standards.
•
• Durability: Durability measures the length of a product’s life. When the product can be
repaired, estimating durability is more complicated. The item will be used until it is no longer
economical to operate it. This happens when the repair rate and the associated costs increase
significantly.

• Serviceability: Serviceability is the speed with which the product can be put into service when
it breaks down, as well as the competence and the behavior of the serviceperson.

• Aesthetics: Aesthetics is the subjective dimension indicating the kind of response a user has to
Dimensions of Service Quality
• Reliability: Perform promised service
dependably and accurately. Example: receive
mail at same time each day.
• Responsiveness: Willingness to help
customers promptly. Example: avoid keeping
customers waiting for no apparent reason.
Dimensions of Service Quality
• Assurance: Ability to convey trust and
confidence. Example: being polite and
showing respect for customer.
• Empathy: Ability to be approachable.
Example: being a good listener.
• Tangibles: Physical facilities and facilitating
goods. Example: cleanliness.
 What is TQM?
• Total Quality Management (TQM) is an enhancement to the
traditional way of doing business. It is a proven technique to
guarantee survival in world-class competition. Only by changing
the actions of management will the culture and actions of an
entire organization be transformed.
• Analysing the three words, we have
– Total—Made up of the whole.
– Quality—Degree of excellence a product or service provides.
– Management—Act, art, or manner of handling, controlling,
directing, etc.
• Thus TQM is the art of managing the whole to achieve
excellence.
 Total Quality Management (TQM)
• Total quality management: managing the
entire organization so that it excels on all
dimensions of products and services that are
important to the customer

• Two fundamental operational goals

– Careful design of the product or service
– Ensuring that the organization’s systems can
consistently produce the design
 Six Basic Concepts of TQM
1. A committed and involved management to provide long-term
top-to-bottom organizational support.
2. An unwavering focus on the customer, both internally and
externally.
3. Effective involvement and utilization of the entire work force.
4. Continuous improvement of the business and production
process.
5. Treating suppliers as partners.
6. Establish performance measures for the processes.
7. By this we achieve excellence.
Total Quality Management
Elements
Role of
Top Management

Quality
System

Employee Involvement Tools & Techniques

Training & Team Work
Quality Gurus and their major contribution
Shewhart Statistical Process Control

Ronald Fisher Design of Experiments

Deming 14-points for Management

Juran Juran Trilogy

Taguchi Robust Design

Ishikawa Quality Tools, Fishbone Diagram

Crosby Zero Defect, “Quality is Free”, Cost of Poor

Quality
 Deming’s contributions
• W.Edwards Deming: American Engineer
• New perceptions to quality management
• Plan – Do – Check – Act (PDCA) Cycle
• 14 point agenda for quality improvement
• Considered father of Japanese Quality
Management Systems
– Highest Award in Japan named after him
The Deming Cycle
 Costs of Quality

Appraisal costs Prevention costs

Quality Costs

Internal failure External failure

costs costs
Prevention costs

• Prevention costs are incurred to prevent or avoid quality

problems. These costs are associated with the design,
implementation, and maintenance of the quality management
system.

• They are planned and incurred before actual operation, and they
could include:
• Product or service requirements—establishment of specifications
for incoming materials, processes, finished products, and services
• Quality planning—creation of plans for quality, reliability,
operations, production, and inspection
• Quality assurance—creation and maintenance of the quality
system
• Training—development, preparation, and maintenance of
programs
Appraisal costs
• Appraisal costs are associated with measuring and
monitoring activities related to quality. These costs
are associated with the suppliers’ and customers’
evaluation of purchased materials, processes,
products, and services to ensure that they conform to
specifications. They could include:
• Verification—checking of incoming material, process
setup, and products against agreed specifications
• Quality audits—confirmation that the quality system
is functioning correctly
• Supplier rating—assessment and approval of
suppliers of products and services
Internal failure costs
• Internal failure costs are incurred to remedy defects
discovered before the product or service is delivered
to the customer. These costs occur when the results
of work fail to reach design quality standards and
are detected before they are transferred to the
customer. They could include:
• Waste—performance of unnecessary work or
holding of stock as a result of errors, poor
organization, or communication
• Scrap—defective product or material that cannot be
repaired, used, or sold
• Rework or rectification—correction of defective
material or errors
External failure costs
• External failure costs are incurred to remedy defects
discovered by customers. These costs occur when
products or services that fail to reach design quality
standards are not detected until after transfer to the
customer. They could include:
• Repairs and servicing—of both returned products and
those in the field
• Warranty claims—failed products that are replaced or
services that are re-performed under a guarantee
• Complaints—all work and costs associated with
handling and servicing customers’ complaints
• Returns—handling and investigation of rejected or
recalled products, including transport costs
 7 Quality Tools
Flowchart - a diagram Pareto chart - help to
Scatter Diagram- depict
of the sequence of break down a problem
trends in data over time
operations into components

Cause-and-effect
Checksheet - basic
diagram - show
form to standardize Histogram
relationships between
data collection
causes and problems

Process control chart -

used to assure that
processes are in
statistical control
 Flow Chart
• A flowchart is a type of diagram that represents an algorithm,
workflow or process, showing the steps as boxes of various kinds,
and their order by connecting them with arrows.

• Schematic drawing of the process to measure or improve.

• Starting point for process improvement
• Potential weakness in the process are made visual.
• Picture of process as it should be.
Benefits
• Show what actually happens at each step in the process
• Show what happens when non-standard events occur
• Graphically display processes to identify redundancies and other wasted effort
Flowchart
 Histogram
• The purpose of a histogram is to graphically
summarize the distribution of a univariate data
set.The histogram graphically shows the
following:
• Mean of the data
• Spread of the data
• Skewness of the data
• Presence of outliers
Histogram
 The Checksheet
• The check sheet is a form (document) used to collect data in real time at
the location where the data is generated.’
• The data it captures can be quantitative or qualitative. When the
information is quantitative, the check sheet is sometimes called a tally
sheet.

• When to Use a Check Sheet:

• When data can be observed and collected repeatedly by the same person or
at the same location.
• When collecting data on the frequency or patterns of events, problems,
defects, defect location, defect causes, etc.
• When collecting data from a production process.
Checksheet
 The Cause and Effect
Diagram
• Also Called: Ishikawa Diagram.
• The Common uses of the Ishikawa diagram
are product design and quality defect prevention,
to identify potential factors causing an overall
effect.
• Each cause or reason for imperfection is a
source of variation.
• The Causes are usually grouped into major
categories to identify these sources of variation.
 The Cause and Effect Diagram
• Each cause or reason for imperfection is a source of variation.
Causes are usually grouped into major categories to identify these
sources of variation. The categories typically include:
• The Root Cause is the explained.
• People: Anyone involved with the process
• Methods: How the process is performed and the specific requirements
for doing it, such as policies, procedures, rules, regulations and laws
• Machines: Any equipment, computers, tools, etc. required to
accomplish the job
• Materials: Raw materials, parts, pens, paper, etc. used to produce the
final product
• Measurements: Data generated from the process that are used to
evaluate its quality
• Environment: The conditions, such as location, time, temperature, and
culture in which the process operates
Cause-and-Effect Diagram
(Fishbone Diagram)
 Pareto Charts
A Pareto chart is a basic quality tool that helps you identify the
most frequent defects, complaints, or any other factor you
can count and categorize.
Purpose:
Prioritize problems.

How is it done?
• Create a preliminary list of problem classifications.
• Tally the occurrences in each problem classification.
• Arrange each classification in order from highest to lowest
• Construct the bar chart
• Calculate the percentage of each issues on the total issues
• Find the cumulative percentage
• The percentage data is used to draw the line graph
 Pareto Charts
Benefits:
 Pareto analysis helps
graphically display
results so the
significant few
problems emerge
from the general
background
 The 80-20 Rule.
 It tells you what to
work on first
 SPC
• SPC (Statistical Process Control) is a group of tools and techniques
used to determine the stability and predictability of a process.
Graphical depictions of process output are plotted on Control
Charts. The first Control Charts were developed by Walter
Shewhart at Bell Labs in the 1920’s.

• Control Charts indicate instability of the process being studied.

• The user of the chart recognizes instability and determines a
course of action to remove the Out of Control condition.
• The subsequent improvement process becomes a new and
improved current state. SPC continues until the stability of the
process is In Control and the process is capable.
• SPC is utilized to understand a process and achieve higher levels of
quality.
• The continued use of Control Charts once a process is stable and
capable is not recommended as cost effective.
 SPC
• The Control chart will indicate the manager the
details about the variation in the process.
• We can identify if the process is within the
control limits or is it moving out of the control
limits.
• The necessary steps are taken to bring put the
process back in control of the user.
• We need the identify the Common Cause and
special cause variations.
Process Control Chart
 Scatter Diagrams
The scatter diagram graphs pairs of numerical data,
with one variable on each axis, to look for a
relationship between them.
Purpose:
To identify the correlations that might exist between a quality characteristic
and a factor that might be driving it
• A scatter diagram shows the correlation between two variables in a process.

• The scatter plots help to identify root cause of problem.

• To find in what way two variables are related

• The dots representing data points are scattered on the diagram.

– The extent to which the dots cluster together in a line across the diagram
shows the strength with which the two factors are related.
Temperature VS Ice Cream
Sales
Scatter Diagrams
• JIT : Just In Time:

• An inventory strategy companies employ to increase

efficiency and decrease waste by receiving goods only
as they are needed in the production process, thereby
reducing inventory costs.

• In short, the Just-in-Time inventory system focus in

having “the right material, at the right time, at the right
place, and in the exact amount”, without the safety net
of inventory. The JIT system has broad implications for
implementers.
 5S
• 5S is the name of a workplace organization method.
• It is used to organize a work space for efficiency and
effectiveness .
• 5S is often one element of a larger Lean initiative and
promotes continuous improvement.
• The 5S methodology helps a workplace remove items that are
no longer needed (sort), organize the items to optimize
efficiency and flow (straighten), clean the area in order to
more easily identify problems (shine), implement color coding
and labels to stay consistent with other areas (standardize) and
develop behaviors that keep the workplace organized over the
long term (sustain).
5S
5S
 The Steps
• Sort – This step focuses on the removal of any unnecessary workplace clutter.
Once tools, supplies, materials and equipment have been tagged, they are then
relocated to a holding area for a follow up evaluation. Items that are only seldom
used can be stored closer in proximity to the workspace, while obsolete clutter
should be discarded.
• Sorting’s benefits include: a more effective use of space, simplified tasks, a
reduction in hazards, and a significant decrease in distracting clutter.

• Set in Order – The goal of this step is to examine methods of storage that are
effective and efficient, sometimes referred to as “visual management,” and then
create a work environment that is organized, ergonomic, uncluttered and easily
navigable.
• The methodical storage of materials means that every item has a predetermined
location where it will remain until it used, and then it will be returned immediately
following its use.
• Labels and color coding are also helpful techniques to use in this step. With
an organized and efficient use of storage, everyone is easily able to locate important
items and enjoy a less stressful work environment.
• Shine – With the clutter gone and the storage organized, the next step is to
properly and thoroughly clean the work area every day. This step is critical
as a way of sustaining the improvements begun in the Sort and Set phases.
All storage areas, machines, equipment, tools and work surfaces must be
cleaned and checked regularly.

• Standardize – Now that the first three steps are in play, it’s time to
standardize these new practices. This will become the new norm for the
workspace. In this step, work instructions, checklists, standard work and
other documentation are developed.

• Sustain – The final step of 5S is certainly the most challenging: remaining

disciplined enough to sustain the positive changes made in the first three
steps. It is critical that the new system be maintained or the efforts and
costs put into developing the new system will be pointless. By putting a
formal system in place that includes regular training and communication,
employees will be able to comfortably conform to the company’s 5S
procedures.
 The benefits of 5S
• Increased Efficiency and Productivity
• Because 5S elements work to get and keep every aspect of your business organized, businesses
that adopt the 5S system are often more efficient.

• Increased Workplace Safety

• A clean, well-organized working environment reduces hazards and in turn creates a safer
workplace. Safety-first standard operating procedures require employees to clean spills
immediately, keep aisles free from clutter and store items in their proper place. This is
especially important for businesses subject to OHSAS 18001, Occupational Health and Safety
Assessment Series. Good organization, which includes storing commonly used items close to the
work area and in ergonomically correct locations not only reduces unnecessary movements but
also the potential for injuries that occur over time, such as carpal tunnel syndrome.

• Effective Cost-Control
• Implementing the 5S system can have significant direct and indirect cost-saving advantages. For
one thing, better organization often reduces storage space requirements. For another, you are
less likely to experience increased inventory costs relating to lost or misplaced inventory items.

• Increased Customer Satisfaction and Employee Morale

• https://www.youtube.com/watch?v=umUvWLeMZMY
 Poka Yoke
• Japanese approach to 'mistake proofing' in all aspects of manufacturing,
customer service, procurement, etc. It employs visual signals that make
mistakes clearly stand out from the rest, or devices that stop an assembly line
or process if a part or step is missed.
•
It was developed by the Japanese engineer Shigeo Shingo in the 1960s. To
avoid (yokeru) inadvertent errors (poka).

• The Purpose of Poka Yoke:

• We overcome the inefficiencies of inspection through the use of automatic
devices called Poka Yoke
• Not accept a defect for the process
• Not make a defect
• Not Allow a Defect to be passed to the next process

• https://www.youtube.com/watch?v=hJk7ILvjy_0
 Poka Yoke:The Shingo System: Fail-Safe
Design

• The process to design in such a way that the

errors are automatically prevented. Example
The Plug system, USB ports etc.
 Six Sigma
• A philosophy and set of methods companies use to eliminate
defects in their products and processes.

• Seeks to reduce variation in the processes that lead to product defects

• The name, “Six Sigma,” refers to the goal of no more than four
defects per million units

• Six Sigma is a set of techniques and tools for process improvement. It

was developed by Motorola in 1986. Jack Welch made it central to his
business strategy at General Electric in 1995. Today, it is used in
many industrial sectors.
 Six Sigma Quality

• To achieve Six Sigma, a

process must not produce more
than 3.4 defects per million
opportunities.
• A Six Sigma defect is defined
as anything outside of
customer specifications.
• A Six Sigma opportunity is
then the total quantity of
chances for a defect.
• The Process sigma can easily
be calculated using a Six
Sigma calculator.
Six Sigma

99.9997%
 Managing Up the Sigma
Scale
Sigma % Good % Bad DPMO
1 30.9% 69.1% 691,462
2 69.1% 30.9% 308,538
3 93.3% 6.7% 66,807
4 99.38% 0.62% 6,210
5 99.977% 0.023% 233
6 99.9997% 0.00034% 3.4
Six Sigma Methodology
DMAIC Cycle
 Six Sigma-Levels
Six Sigma uses a special role model with

6σ
popular certifications:
Six Sigma Champions:
Project sponsors
and mentors

Six Sigma Black Belts:

Full-time project
managers
Six Sigma Companies
• Toyota quality
• https://www.youtube.com/watch?v=pdaWR_EoI1k

• Car quality test

• https://www.youtube.com/watch?v=YVqlZO7tHFE
• https://www.youtube.com/watch?v=1r0o9VPyFw0